HUD Heartland News

Volume 8, Issue 1
November 2013

View the published version of the Newsletter with photos

• Supporting our Veterans
• Housing Counselor Certification Proposed Rule
• Upcoming Webinars
• Changes to Reverse Mortgage Program
• Housing Counseling Grants
• South Dakota Single Family FHA Information
• New Single Family Housing Policy Handbook
• HOME Final Rule
• Renting to Owning
• Occupancy Handbook Updated
• Fair Market Rents
• Be Ready for a Disaster
• Multifamily Housing What's New
• The Edge

Calendar of Events:

November 11
Office Closed for Holiday

November 19-20
South Dakota Housing Development Authority Housing Conference (www.sdhda.org/)
Pierre

November 21
South Dakota Native Homeownership Coalition Meeting
Pierre

November 28
Office Closed for Holiday 

December 10
Homeless Consortium Meeting (www.housingforthehomeless.org/)
Chamberlain

December 25
Office Closed for Holiday

Supporting our Veterans

By: Roger Jacobs, Sioux Falls Field Office Director

As we celebrate Veterans Day, we recognize our veterans and the services and sacrifices they have made for our country. This past summer I had the opportunity to attend an Air Force band concert in front of our nation's Capitol. As I sat on the steps listening to the band, looking out over the Washington Mall, I couldn't help but be amazed at the beauty of our country. When the band asked all veterans to stand and be recognized as they played each military theme song, I stood with pride for our country. Unfortunately, there are veterans who are homeless and are dealing with a myriad of challenges in their lives. I am proud to work for an agency that is working toward ending veteran homelessness. HUD and the Veterans Administration are working together to end homelessness among veterans through the HUD-Veterans Affairs Supportive Housing (HUD-VASH) program.

The HUD-VASH program combines Housing Choice Voucher (HCV) rental assistance for homeless veterans with case management and clinical services provided by the Department of Veterans Affairs (VA). The VA provides these services for veterans at VA medical centers (VAMCs) and community-based outreach clinics. The VA works closely with homeless veterans and refer them to public housing agencies who provide the vouchers. Veterans participating in HUD-VASH rent privately owned housing and generally pay 30 percent of their income for rent.

With the announcement earlier this year of 10 additional vouchers for Sioux Falls Housing and the Sioux Falls VA Health Care System, Sioux Falls Housing now administers 100 vouchers for homeless veterans in the Sioux Falls area. In addition to these, Pennington County Housing in Rapid City administers 95 HUD-VASH vouchers and Meade County Housing in Sturgis administers 35 HUD-VASH vouchers.

Resources for Veterans

There are several resources available for veterans:

Homelessness Resource Exchange (www.onecpd.info/homelessness-assistance/resources-for-homeless-veterans/) - is a one stop spot for veterans and those who help veterans find housing.

Vet Center (www.vetcenter.va.gov/index.asp) - is a program established by Congress in 1979 to provide a broad range of counseling, outreach and referral services to veterans to help them make a satisfying post-war readjustment to civilian life. The centers are community-based and part of the Department of Veterans Affairs. In April 1991, in response to the Persian Gulf War, Congress extended the eligibility to veterans who served during other periods of armed hostilities after the Vietnam era.

Veterans Administration Home Loan Guaranty - the Veterans Administration (VA) helps service members, veterans, and surviving spouses become homeowners by providing a home loan guaranty benefit and other housing-related programs to assist in the purchase, construction, retention or adaptation of a home for personal occupancy. VA home loans (www.benefits.va.gov/homeloans/) are provided by lenders and the VA guarantees a portion of the loan.

Military OneSource (www.militaryonesource.mil/) - is a service provided by the Defense Department to help with a broad range of concerns including money management, spouse employment, parenting and child care, relocation, deployment, and families with special-needs members.

Your Door to FHA Homeownership

Phone toll-free (800) CALLFHA or
(800) 225-5342, M-F, 7am-7pm CT 
Email: answers@hud.gov
Search online: www.hud.gov/answers

Housing Counselor Certification Proposed Rule

On September 13, 2013 HUD published proposed revisions to the Housing Counseling Program Code of Federal Regulations, 24 CFR Part 214. The proposed changes address amendments to the 2007 regulations as a result of the Dodd-Frank Wall Street Reform and Consumer Protection Act.

The proposed rule (www.federalregister.gov/articles/2013/09/13/2013-22229/housing-counseling-program-new-certification-requirements) requires that entities and individual counselors be certified by HUD, and prohibits distribution of grant funds to agencies in violation of Federal election laws, and requires reimbursement of grant funds for misuse of funds. Training for the HUD Certification Examination will be provided on or before publication of the Final Rule.

Upcoming Webinars

FHA Single Family Handbook Rollout for FHA-Approved Mortgagees Webinar (www.visualwebcaster.com/FHA/96903/reg.html)
  November 13, 2013, 11am -12 pm

Revisions to FHA's Loss Mitigation Home Disposition Options Webinar (www1.gotomeeting.com/register/553973377)
  November 13, 2013, 1-3 pm

FHA Single Family Handbook Rollout for FHA-Approved Mortgagees Webinar (http://www.visualwebcaster.com/event.asp?id=96902)
  November 14, 2013, 11am -12 pm

Revisions to Single Family Default Monitoring System Reporting Webinar (www1.gotomeeting.com/register/603128392)
  November 14, 2013, 1-3 pm

Overview HUD Early Delinquency Activities and Loss Mitigation Program Webinar (www1.gotomeeting.com/register/391646640)
  December 4, 2013, 1-3 pm

Loss Mitigation - Home Retention Options Webinar (www1.gotomeeting.com/register/519349800)
  December 11, 2013, 1-3 pm

Changes to Reverse Mortgage Program

The Home Equity Conversion Mortgage (HECM) or Reverse Mortgage program allows homeowners age 62 or older to withdraw a portion of the equity in their home with limitations or a single disbursement lump-sum payment at the time of closing. A HECM may also be used to purchase a primary residence if the buyer is able to use cash on hand to pay the difference between the HECM proceeds and the sales price plus closing costs for the property being purchased.

The President recently signed House of Representatives Bill (H.R.) 2167 "The Reverse Mortgage Stabilization Act of 2013" which gives FHA the authority to make necessary changes to the HECM program, thus reducing risks to FHA and making the program easier for seniors to use responsibly. For more information, read Mortgagee Letters 2013-27 and 2013-33.

Housing Counseling Grants

Over $250,000 has been awarded to three HUD-approved housing counseling agencies in South Dakota. Housing counseling agencies provide services to help people who are buying their first home, seeking affordable rental housing, or facing foreclosure. The funding was part of more than $40 million in housing grants awarded nationwide. In South Dakota, the recipients are: South Dakota Housing Development Authority - $218,261; Oglala Sioux Tribe Partnership for Housing - $18,167; and Pioneer Credit Counseling - $14,476.

South Dakota Single Family FHA Information

New Single Family Housing Policy Handbook

FHA is developing a new Single Family Housing Policy Handbook (SF Handbook) that will serve as a single authoritative source for Single Family housing policy. FHA is combining the content from existing handbooks and mortgagee letters, using clear and direct language, making it easier to digest and implement Single Family policy change, and to quickly find information.

The SF Handbook will be completed in phases and when complete will include all Single Family Housing business requirements including origination, servicing, Real Estate Owned/Claims, and quality control.

The first phase covers the Application through Endorsement process for Title II forward mortgages and is available for feedback October 29, 2013 through November 29, 2013. This phase and drafts of upcoming phases are and will be posted on the "Drafting" Table. A feedback response worksheet is available on this website and can be submitted to SFHandbook@HUD.gov.

HOME Final Rule

HUD recently published a Final Rule in the Federal Register to amend the HOME Investment Partnerships Program regulations. These amendments represent the most significant changes to the program in 17 years. HOME is the largest federal block grant for affordable housing and provides grants to state and local governments for rental and homebuyer housing development, homebuyer down payment assistance, homeowner rehabilitation assistance, and tenant-based rental assistance.

Since its inception, many HOME participating jurisdictions have encountered challenges in administering their programs and in managing their growing portfolios of older HOME projects. These challenges have been intensified by recent housing and credit market conditions.

The significant changes to the HOME program regulations are intended to provide the participating jurisdictions and their partners with regulatory guidance to enhance the efficiency and effectiveness of the HOME Program in the context of a more complex housing and community development environment. Read the Final Rule (www.onecpd.info/onecpd/assets/File/HOME-Final-Rule-Overview.pdf).

Renting to Owning

After renting a home for 20 years, Eileen Crowfeather was able to purchase the home with the Homeownership Voucher Program. Eileen, a participant in Mobridge Housing Authority's Family Self Sufficiency Program, was able to convert her Housing Choice Voucher from rental assistance to homebuyer assistance.

The Homeownership Voucher Program is for first-time homeowners to use the rental voucher subsidy to pay for the monthly mortgage and other homeownership expenses.Public Housing Authorities may choose to participate in the Homeownership Voucher Program, but are not required to. "For Eileen, the dream of owning her own home has been realized. Above all, it represents security to her," stated Peggy Dixon, Family Self Sufficiency Coordinator of the Mobridge Housing Authority.

Through this program, a family may receive assistance under this program indefinitely for an elderly household or a disabled family. For all other families, there is a mandatory time limit of 15 years if the initial mortgage incurred to finance the purchase of the home has a term that is 20 years or longer, and for all other cases the maximum term of homeownership assistance is 10 years.

Occupancy Handbook Updated

Effective August 7, 2013, Change 4 to Handbook 4350.3 REV-1 "Occupancy Requirements of Subsidized Multifamily Housing Programs" is updated to include information on use of the Enterprise Income Verification (EIV) system; Violence Against Women Act (VAWA) requirements; Supplemental Information to Application for Federally Assisted Housing; and Rent Refinement of Income and Rent Determination Requirements in Public and Assisted Housing Programs; Final Rule and requirements relating to admission of individuals subject to state lifetime sex offender registration requirements. Get an electronic version of the handbook.

Fair Market Rents

Effective October 1, 2013, Fair Market Rents (www.huduser.org/portal/datasets/fmr.html) (FMRs) for Fiscal Year 2014 were published in the October 3, 2013 Federal Register. FMRs are used to determine payment standard amounts for the Housing Choice Voucher program, to determine initial renewal rents for some expiring project-based Section 8 contracts, as well as serve as a ceiling in the HOME rental assistance.

FMRs and Income Limits from HUD's Policy Development & Research are now available on Apple iOS and Android powered smartphones. The map-based application (www.huduser.org/portal/pdr_mobile.html) allows users to search FMRs and income limits by current location or by metropolitan area, county, zip code, and/or address.

South Dakota HUD Office
4301 W. 57th Street, Suite 101
Sioux Falls, SD 57108

Phone: (605) 330-4223
Fax: (605) 330-4465

Email: SD_Webmanager@hud.gov
Website: www.hud.gov/southdakota

This is a quarterly publication of the South Dakota HUD office. For active internet links, view the newsletter online at www.hud.gov/southdakota.

Please contact us if you have any news or updates to include in our newsletter.

Sioux Falls Office Staff

Be Ready for a Disaster

By: Roger Jacobs, Sioux Falls Field Office Director

In mid-September I was detailed on a Mission Assignment with the Federal Emergency Management Agency (FEMA) assisting survivors of the Colorado flooding. HUD's role in the response phase of disaster recovery is to staff Disaster Recovery Centers to help coordinate assistance from FEMA and other federal and state agencies. HUD employees assisted by helping find housing, providing them with single family information, and listening to their stories.

Although my duties did not include direct contact with the survivors, other HUD employees shared numerous stories of families losing everything and how they would have to start over. One thing is certain about disasters - they can strike at any moment with or without a warning. What's relevant is that in either case, preparedness is vital.

The recent heavy snows in western South Dakota caused massive power outages that lasted for several days or longer. Are you ready for such an event? If there is a fire in a multifamily property, is there an evacuation plan and a way to account for all residents?

There are a lot of resources available to assist in the planning and preparation for such an event. One such resource is www.breadysd.com. From this site you can implement a variety of things from building a plan, to ordering guidebooks for yourself or your residents, to preparing emergency kits. Be ready!

Multifamily Housing What's New

For the most current information from HUD's Multifamily Housing HUB in Denver.

The Edge

Stay current on the latest news and research from HUD's Office of Policy Development and Research with their electronic newsletter "The Edge" (www.huduser.org/portal/pdredge/pdr_edge_mobileapps.html). The publication is available online, email, or with their new application (app) for Apple iOS and Android phones.

Mission of the U.S. Department of Housing and Urban Development: To create strong, sustainable, inclusive communities and quality affordable homes for all. HUD is working to strengthen the housing market to bolster the economy and protect consumers; meet the need for quality affordable rental homes; utilize housing as a platform for improving quality of life; build inclusive and sustainable communities free from discrimination; and transform the way HUD does business.

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